July 2019

The imminent death of the Personal Service Company ? Never mind the prospect of a Corbyn led government in April 2020, a further and potentially far reaching erosion of entrepreneurism also occurs on that same date, with the introduction of the off-payroll rules to the private sector. The Budget in 2018 announced that from April 2020 businesses in the private sector will become responsible for assessing an individual’s employment status and determining whether or not the off-payroll rules apply. In cases where the business does consider that such rules apply, like it or not, the individual who historically will most likely have operated via a PSC, will be deemed an employee. Goodbye dividends, hello PAYE and NICs! HMRC has long been concerned that individuals utilising PSCs pay less income tax and NICs then those employed directly. In April 2017 the off-payroll rules were applied to the public sector and will…